Grads, look for coverage

Many college students may find themselves without health insurance after they graduate…. Many college students may find themselves without health insurance after they graduate. Pennsylvania law usually terminates coverage under a parent plan at the age of 19, but as long as the insured remain in school full-time, coverage extends to older people.

Melissa Fox, the deputy press secretary for the Pennsylvania Insurance Department, said in an e-mail that under other circumstances, the insurance can last even longer.

“If the child has a mental or physical handicap and is incapable of self-sustaining employment, the policy will not terminate and the child can remain on the policy indefinitely,” Fox wrote.

Most students, however, have their graduation date as the cutoff for health coverage.

Fox said that almost all companies offering health insurance in Pennsylvania offer individual policies.

Graduates who want to purchase an individual policy have to go through a process called “underwriting” first, Fox said.

Underwriting is where the company determines whether or not it will accept the person as a risk.

Nancy Glicksman, a benefits specialist from the Medical Benefits Network, said that most companies examine the applicant’s medical history from the previous five years.

Besides the state Blue Cross Blue Shield Plans, Fox said, companies can deny coverage based on its findings during the underwriting process.

“BCBS is known as the insurer of last resort here in the state,” Fox said. “That means if you apply to any BCBS plan for coverage, they cannot turn you away.”

Fox said there is not an average cost for health insurance plans.

Glicksman agreed, stating that each company has different plans.

Factors such as the person’s age and whether or not they smoke affect the cost for a plan, Glicksman said.

“The younger you are, the cheaper it is,” Glicksman said.

Fox said that there are two kinds of health insurance: a fee for service and managed-care plans.

Fee for service plans typically assume that the medical professional will be paid for each service provided to the patient, Fox said. The patient is seen by the doctor of his or her choice, and the claim is filed by either the medical provider or the patient.

According to Fox, more than half of all Americans have some kind of managed-care plan.

“These plans provide comprehensive health services to their members and offer financial incentives to patients who use the providers in the plan,” Fox said.

When choosing a health insurance plan, Fox said that students should evaluate their individual situations.

“A managed care plan may have a lower cost in the form of co-pays, but it has limitations in that it will only cover office visits for the providers in their network,” Fox said.

“Everyone really needs health insurance,” Glicksman said. “You should plan for the unexpected.”